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Category: Business and Economy

COVID-19: Bailout funds will boost economy – capital market operator
A Capital Market operator, Mr Boniface Okesie, says there is need for the Federal Government to urgently give COVID-19 bailout funds to local companies to reposition the economy.
Okesie, President, Progressive Shareholders Association of Nigeria, told the News Agency of Nigeria (NAN) in Lagos on Tuesday that quick bailout would save businesses.
“ The funds are expected to give lifeline to many troubled indigenous companies as the coronavirus pandemic is not immune to any sector of the economy.
`Releasing the funds will recalibrate businesses,’’ he said.
According to him, the Federal Government might borrow more to execute the capital component of the 2020 Budget.
“Times have really changed, as the price of crude oil in the international market has been dwindling, owing to the pandemic.
“The pandemic affected demand for crude oil, which made the government to experience decline in projected revenue,” he noted.
He added that the Federal Government should give more attention to the health sector so as to save more lives.
“It is only a healthy workforce that can contribute adequately to national development,” he said. (NAN)
July 21, 2020
NSE market indices down 0.07%, as MPC retains policy rates
The Nigerian Stock Exchange (NSE) opened the week on Monday with a loss of 0.07 per cent, just as the Monetary Policy Committee (MPC) retained key policy variables.
The MPC committee members at the end of the one-day virtual policy meeting retained all policy parameters.
They maintained the Monetary Policy Rate (MPR) at 12.5 per cent; the asymmetric corridor around the MPR at +200/-500bps; Cash Reserves Ratio (CRR) at 27.5 per cent; and liquidity ratio at 30 per cent.
Consequently, the All-Share Index lost 18.08 points or 0.07 per cent to close at 24,269.58 compared with 24,287.66 on Friday.
Also, the market capitalisation dropped by nine billion naira to close at N12.660 trillion in contrast with N12.669 on Friday.
The downturn was impacted by losses recorded in large and medium capitalised stocks, amongst which are; Cutix, Neimeth International, Zenith Bank, Ecobank Transnational Incorporated and Access Bank.
Analysts at Afrinvest Limited expected bargain hunting to drive gains in the next trading session.
Market breadth was slightly negative, with 12 gainers versus 13 losers.
Neimeth International Pharmaceuticals led the losers’ chart in percentage terms, dropping by 10 per cent, to close at N1.35, per share.
Cutix followed with 9.89 per cent to close at N1.64, while Chams lost 4.35 per cent to close at 22k, per share.
Lasaco Assurance dropped 3.85 per cent to close at 25k, while Sterling Bank shed 3.20 per cent to close at N1.21, per share.
On the other hand, GlaxoSmithKline dominated the gainers’ chart in percentage terms, gaining 9.47 per cent, to close at N5.20, per share.
Fidson came second with 9.43 per cent to close at N2.90, while Linkage Assurance appreciated by 9.38 per cent to close at 35k, per share.
Unity Bank garnered 8.89 per cent to close at 49k, while Ardova Plc appreciated by 7.17 per cent to close at N13.45, per share.
In spite of the drop in market indices, the volume of shares traded rose by 90.09 per cent with an exchange of 305.10 million shares, valued at N2.10 billion in 3,258 deals.
This was in contrast with 160.50 million shares worth N1.47 billion traded in 2,997 deals on Friday.
Transactions in the shares of Sovereign Trust Insurance topped the activity chart with 75.56 million shares valued at N15.113 million.
United Bank for Africa followed with 70.71 million shares worth N441.89 million, while Guaranty Trust Bank sold 36.97 million shares valued at N3.71 million.
Japaul Oil & Maritime accounted for 17.42 million shares worth N3.71 million, while Zenith Bank transacted 10.60 million shares worth N68.10 million. (NAN)
July 21, 2020
Fidelity Bank appoints Nneka Onyeali-Ikpe MD-designate, assumes office Jan.1, 2021
Fidelity Bank Plc has notified the Nigerian Stock Exchange (NSE) and the general public of the appointment of Mrs Nneka Onyeali-Ikpe, as the incoming Managing Director/Chief Executive Officer, effective Jan. 1, 2021.
The bank made the announcement on Monday in a notice on the NSE website, signed by Ezinwa Unuigboje, its Company Secretary.
The notice said the appointment followed the impending retirement of its Managing Director/Chief Executive Officer, Mr Nnamdi Okonkwo, from the Board of Directors of the bank, with effect from Dec. 31, 2020, upon completion of his contract tenure.
“In compliance with the succession policy of the bank, the board has approved the appointment of Onyeali-Ikpe, the current Executive Director, Lagos and South West Directorate as the MD/CEO designate of the bank, to assume office with effect from Jan. 1, 2021.
“The approval of the Central Bank of Nigeria (CBN) has been obtained for the appointment,” said the statement.
It said the board had also approved the appointment of Mr Kevin Ugwuoke, the current Chief Risk Officer of the Bank, as Executive Director, Chief Risk Officer, subject to the approval of the CBN.
The statement said that Okonkwo was appointed to the Board of the bank in April 2012 as an Executive Director and was subsequently appointed the MD/CEO on Jan.1, 2014.
It said that Okonkwo implemented a digital-led strategy which led to significant growth across key performance metrics and increased market share, with the bank currently ranked sixth amongst Nigerian banks on most performance indices.
According to the statement, the bank under his leadership successfully accessed the local and international markets through the issuance of N30 billion Corporate Bonds in 2015 and $400million Eurobonds in 2017.
“The board seizes this opportunity to express sincere appreciation to Okonkwo for his significant contributions to the growth and development of the Bank during his tenure of the board,” the statement added.
It said Onyeali-Ikpe was appointed to the Board of Fidelity Bank in 2015 as an Executive Director and currently oversees the Lagos and Southwest Directorate.
It stated that she led the transformation of the directorate to profitability and sustained its impressive year-on-year growth across key performance metrics.
The bank said that Onyeali-Ikpe had been an integral part of the current management team responsible for the remarkable increase in the bank’s performance in the last five years.
It stated that the area under her direct responsibility, in the period, contributed over 28 per cent of the bank’s profit before tax, deposits and loans.
“Onyeali-Ikpe has over 30 years of experience across various banks including Standard Chartered Bank Plc, Zenith Bank Plc and Citizens International Bank Limited, where she held several management positions in Legal, Treasury, Investment Banking, Retail/Commercial Banking and Corporate Banking
“She has been involved in the structuring of complex transactions in various sectors including oil & gas; manufacturing, aviation, real estate and export.
“As an Executive Director at Enterprise Bank, she received formal commendation from the Asset Management Corporation of Nigeria (AMCON) as a member of the management team that successfully turned around Enterprise Bank.
“She holds Bachelor of Laws (LLB) and Master of Laws (LLM) degrees from the University of Nigeria, Nsukka and Kings College, London, respectively,” it said.
It added that Onyeali-Ikpe had attended executive training programmes at Harvard Business School, the Wharton School University of Pennsylvania, INSEAD School of Business, Chicago Booth School of Business, London Business School and IMD amongst others.
According to the bank, Onyeali-Ikpe is currently undergoing a Diploma programme in Organisational Leadership at Said Business School, Oxford University, UK. (NAN)
July 20, 2020
Google to invest $10bn in India, as it becomes investment destination in pandemic
Technology Company, “Google” has said it plans to invest 10 billion dollars in India in the coming years, as reports revealed that the country is most favourable destination amid the Coronavirus (COVID-19) pandemic.
This was made known in a report made available to the News Agency of Nigeria (NAN) by the Indian High Commission on Friday in Abuja.
According to the report, Google will be investing the 10 billion dollars in infrastructure and equity investments, as Silicon Valley companies jostle for a position in one of the world’s fastest-growing internet markets.
It said that Sundar Pichai, the Chief Executive at Google and its parent company, Alphabet, announced the scheme after speaking with India’s Prime Minister Narendra Modi .
It notedd that Modi described the conversation with the technology giant as “extremely fruitful”, discussing new working practices during the Coronavirus pandemic as well as security and safety online.
Pichai at an online event said: “this is a reflection of our confidence in the future of India and its digital economy.”
The promise from Google which did not include specific details to apply to the next “five to seven years”, marks the latest attempt by a big U.S. internet company to woo the leadership of a country,” the report states.
According to the report, the increased interest in India from Google and other U.S, – based investors come as tension on the Indian-Chinese border closes avenues for investors from China.
“Chinese internet giants such as Tencent and Alibaba, along with Chinese venture capital companies, have become among the largest investors in Indian tech.
“But India in April changed its foreign investment rules to require government approval for all would-be Chinese investors.
“A sharp escalation in tensions following a deadly clash on the Himalayan border in June prompted the authorities to ban 59 Chinese apps, including ByteDance-owned TikTok.
“Access to India, now the world’s second-largest mobile market, is particularly important for Google as it is shut out of China.
“It faces the prospect of greater difficulty in operating in Hong Kong following the passage of the new security law there in June.
“India, with its 1.3 billion population, represents one of the biggest opportunities for tech companies globally after hundreds of millions of Indians started using smart phones and accessing the internet in recent years.
“Google Pay, the company’s digital payments service, has grown rapidly since inauguration in the country in 2017,” the report said.
According to the report, Google described its vague spending promise as an India Digitisation Fund, and say it will cover affordable internet access, and new product development.
It said the investment would also be tailored to Indian market needs and accelerating digital transformation, as well as healthcare, education and agriculture.
The report noted that India had insisted that government surveillance took precedence over the kind of encryption that was becoming standard in U.S. internet services, and had sought to limit the local power of the Big Tech oligopoly.
“Jeff Bezos, Amazon’s Chief Executive, travelled to the country earlier this year to promise one billion dollars in investment, and to support 10 billion dollars Indian export sales over the next five years, as his company faces a local antitrust investigation.
“Google’s pledge also comes three months after rival Facebook invested 5.7 billion dollars in Jio Platforms, the fast-growing Indian telecoms company that has launched a series of digital services.
“Jio, part of Mukesh Ambani’s oil-to-retail conglomerate Reliance Industries, has also sold stakes to 11 other foreign investors including the investment arms of U.S. chipmakers Intel and Qualcomm.
“As well as Saudi Arabia’s Public Investment Fund, KKR and Silver Lake.
“Google has also explored investments with Jio and rival telecoms operator Vodafone Idea in recent months. Apple has also stepped up its iPhone manufacturing in the country through its supplier Foxconn.”
According to the report, Google is rising to the occasion by trying to invest a fairly substantial amount in India’s digital transformation.
Mr Ravi Prasad, India’s Minister of Electronics and Information Technology expressed the appreciation of their country to Goggle, saying, “I am very happy that Google is recognising India’s digital innovation and the need to create further opportunity.” (NAN)
July 17, 2020
SHAMSUDDEEN USMAN JOINS DANTIYE CENTRE AS ADVISER
By Lawrence Ekwonu
Former Minister of National Planning, Dr. Shamsuddeen Usman, has joined the Dantiye Centre for Good Leadership and Journalism (DCLJ).
The announcement was made recently in a letter signed by the Chairman of the Board of Trustees of DCLJ, Emeritus Professor Munzali Jibril.
Professor Jibril said the decision to appoint Usman as the Honorary Economic and Regional Adviser of DCLJ was taken because of his “contributions to the economic development and stability of Nigeria and countries in the West African sub-region” and also because of his passion for service.
He said he hoped that Usman, who was also Nigeria’s Finance Minister between 2007 and 2009, would use his vast experience to continue to mentor young people and “tackle the multifarious development problems” facing the country and the continent.
DCLJ is a non-governmental, not-for-profit organisation, with a coterie of professionals, set up to promote good leadership and excellent journalism.
The Chairman said in spite of the current turmoil facing the world, these are also exciting times to welcome Usman as the DCLJ was forging partnerships to seize new opportunities to deepen citizen engagement, capacity building, peace, stability and development in the country and across the sub-region.
July 12, 2020
Buhari signs revised 2020 budget Friday – Presidential aide
President Muhammadu Buhari will on Friday sign into law the revised 2020 budget passed by the National Assembly in June.
The Personal Assistant on New Media to the President, Bashr Ahmad, confirmed this on his tweeter handle in Abuja on Thursday.
The News Agency of Nigeria (NAN) reports that the two chambers of the National Assembly, Senate and House of Representatives, had on June 10 and June 11 respectively passed the revised 2020 budget of N10,805,544,664,642.
NAN recalled that the Federal Executive Council (FEC) had on May 13 approved a revised budget of 10.523trillion.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, who disclosed this, said the Council approved the reduction of oil benchmark price from the initial 57 to 25 dollars per barrel, crude oil production from 2.18million to 1.94million per day.
She said: “The council has approved our recommendations and the approval has these key parameters.
“The crude oil price is approved at $25 per barrel, crude oil production is at 1.94 million barrels per day and then an exchange rate of N360 to $1.
“The revised budget is now in the total sum of N10.523 trillion, a difference of just about N71.5 billion when compared to the approved budget.
“This is because, as we cut down the size of the budget, we also have to bring in new expenditure previously not budgeted, to enable us adequately respond to the COVID-19 pandemic.
“The federal government in this budget will have direct revenue of funding the budget of N5.158 billion. The deficit to this budget, N5.365 trillion and this will be financed by both domestic as well as foreign borrowing.
“The foreign borrowing we are doing for 2020 are all concessionary loans from the IMF, which has already been approved and has crystallized, from the World Bank, Islamic Development Bank as well as Afro EXZIM bank.
“There will also be some drawdown of previously committed loans for major ongoing projects that we will be drawing from both existing facilities as well as some special accounts with the approval of Mr. President and the National Assembly,’’ she said.
However, the legislators increased the budget from the initial N10.5trillion submitted by President Buhari to N10.8trillion.
The figure shows that the sum of N2,488,789,433,344 is for capital expenditure and recurrent non-debt expenditure rose to N4,942,269,241,984.
Others are N2.6 trillion for debt service and N2.9 trillion for sinking funds. (NAN)
July 10, 2020
Oil falls, heads for weekly decline as virus cases hit record
Oil prices fell on Friday, adding to steep losses from the previous session, and were headed for weekly declines on worries that renewed lockdowns following a surge in coronavirus cases in the United States and elsewhere would suppress fuel demand.
Brent crude was down by 25 cents, or 0.6 per cent, at $42.10 a barrel by 0341 GMT, after falling more than two per cent on Thursday.
U.S. oil fell 33 cents, or 0.8 per cent, at $39.29 a barrel after a drop of three per cent in the previous session.
Brent looks set for a weekly decline of nearly two per cent and U.S. crude for a fall of more than three per cent.
Trading was quiet with Singapore on holiday for an election.
While many analysts are expecting economies and fuel demand to bounce back from the pandemic, record daily increases in coronavirus infections in the U.S., the world’s biggest oil consumer, raised concerns about the pace of any recovery.
“I do not suspect many oil traders will be looking to place significant bids in the market today, suggesting prices may continue to wallow into the weekend,’’ said Stephen Innes, Chief Global Markets Strategist at AxiCorp.
More than 60,500 new COVID-19 cases were reported in the U.S. on Thursday, setting a daily record, with Americans being told to take new precautions.
The tally was also the highest daily count yet for any country since the pathogen emerged in China late last year.
In Australia, the government on Friday will consider reducing the number of citizens allowed to return to the country from overseas, after authorities ordered a new lockdown of the country’s second-most populous city, Melbourne.
Oil inventories also remain bloated due to the evaporation of demand for gasoline, diesel and other fuels during the initial outbreak.
U.S. crude oil inventories rose by nearly six million barrels last week after analysts had forecast a decline of just over half that figure. (Reuters/NAN)
July 10, 2020
MAN welcomes CBN’s unification of exchange rates
The Manufacturers Association of Nigeria (MAN) says the unification of the country’s exchange rate is a welcome development that will engender increased investment inflow in the real sector of the economy.
Mr Mansur Ahmed, MAN President, made this remark in a report made available to newsmen on Friday in Lagos.
Ahmed said that the association had, over the years, been advocating for a unified exchange rate to promote a market-friendly rate in the country.
The unified rate, he said, is capable of facilitating stable production planning and engender sustainable economic growth.
He said that drawing from basic knowledge of the transmission mechanism of exchange rate management and experiences of Cuba and India, the current forex unification agenda would entrench a convergence and enhance exchange rate stability.
“It is, therefore, gratifying as it appears that the Central Bank of Nigeria (CBN) has now unified the country’s exchange rate.
“Clearly, this is a welcome development and a laudable initiative that has come at the right time.
“`This is more so, particularly, now that the economic outlook is gloomy in light of the impact of the ravaging COVID-19 pandemic that has culminated in uninspiring macroeconomic situations,’’ Ahmed said.
He recalled with delight that IMF and World Bank had at different times advised the country on the need to unify the multiple exchange rate windows to prevent distortions in investment decisions in the public and private sectors of the economy.
“In fact, the World Bank had attributed the country’s loss of Foreign Direct Investment (FDI) to investors’ exasperation from perceived manipulation of the foreign exchange market.
“The unification will also boost investors’ confidence, control rising inflation and promote transparency, entrench better exchange rate management and eradicate distortions to the barest minimum.
“It is expected to also eliminate the notorious socially destructive rent-seeking activities, halt the incidence of round-tripping, ensure better allocation of resources, facilitates income expansion and stimulate the inflow of foreign investment into the economy.’’
The News Agency of Nigeria (NAN) recalls that the CBN had on July 7 made an adjustment which moved the rate at the Special Secondary Market Intervention Sales (SMIS) to N381 per dollar.
The MAN President, however, stressed the need to recognise the existence of the unavoidable pains that naturally came with the transition from a multiple exchange regime to the domain of a single exchange rate.
Particularly, he said, there is the burden of dollar-denominated loans and offsetting existing credit commitments to foreign suppliers of raw materials.
He advised that the CBN put a measure in place to minimise the intensity of the pain by considering outstanding obligations of manufacturers from the second quarter 2019 till date.
“Given at N345 to a dollar prior to unification and allows such to settle at between N330 and N360,’’ he said.
According to him, this will enable banks to redeem these obligations to foreign suppliers of manufacturers.
He said that many factories might close and the CBN stimulus packages to the manufacturing sector would suffer a huge setback as cash flow crunch becomes the order of the day.
Ahmed also recommended that the apex bank should develop an appropriate implementation strategy that would engender a successful transition from the current multiple windows to a single efficient one.
“The CBN should also ensure that the strategy pursues two fundamental objectives.
“The first, is to limit the short-term pains until efficiency gains materialise by responding swiftly with an inward-oriented rescue guideline while the second should seek to boost the pace at which such efficiency gains materialise.
“It should also submit all the instruments of exchange rate determination gradually to the unseen forces of demand and supply as a matter of necessity,’’ Ahmed advised.
He also urged the apex bank to completely avoid the temptation of interference in order to fully harvest all the benefits that foreign exchange unification can offer. (NAN)
July 10, 2020
FMDQ Exchange admits Axxela Funding Bond on its platform
The FMDQ Holdings (FMDQ Group) has admitted the Axxela Funding 1 PLC ₦11.50 billion Series 1 Bond under its ₦50.00 billion Bond Programme platform.
FMDQ Group in a statement made available to the News Agency of Nigeria (NAN) on Thursday in Lagos, said that Axxela Funding was admitted through its subsidiary, FMDQ Securities Exchange Limited (FMDQ Exchange).
According to the statement, Axxela Funding 1 PLC is a special purpose vehicle (SPV) incorporated by Axxela Limited to raise funds through the issuance of debt securities in the domestic capital market.
“Axxela Limited, owned by Helios Investment Partners, is a natural gas shipping company on the West African Gas Pipeline, providing unique energy solutions with presence in Nigeria and gas export operations in neighbouring West African countries.
“The admittance of the Axxela bond is testament to the opportunities which the Nigeria Debt Market Capital (DCM) avails to corporates in diverse business areas and further, to the potential of the market to support stakeholders effectively even as they carry on their activities in the face of the pandemic.
“The Axxela bond, by its listing on FMDQ, shall be admitted onto the FMDQ Daily Quotations List; thus, promoting the much-needed transparency for investors and providing a credible basis for portfolio valuation daily.
“Also, through the global visibility which the FMDQ website and systems guarantee, the corporate profile of the issuer is raised even further ahead of tapping into other opportunities in the Nigerian capital market,” it said.
The statement highlighted the roles of the DCM, which played an important role in the efficient mobilisation and allocation of resources in the economy and despite the impact of the current times, the market had continued to effectively support corporate firms looking to expand their business operations.
“It is in this regard that FMDQ Holdings PLC (FMDQ Group or FMDQ) in its role as a market organiser of the Nigerian DCM, amongst others, has continued to provide stakeholders in the Nigerian capital market with a credible and robust platform for capital access, risk management and transfer of value,” it said.
FMDQ Group is Africa’s first vertically integrated Financial Market Infrastructure (FMI) group which provides a one-stop platform for the seamless and cost-efficient execution, risk management, clearing, settlement, depository, data and information services for the Nigerian financial market, through its subsidiaries: FMDQ Exchange, FMDQ Clear Limited, FMDQ Depository Limited and FMDQ Private Markets Limited. (NAN)
July 9, 2020
NEC, PTF to have further discussions on reopening of economy, schools
The National Economic Council(NEC) says it will hold further discussions with the Presidential Taskforce on COVID-19 (PTF) on reopening of the economy and schools.
Gov. Ifeanyi Okowa of Delta made this known while briefing State House correspondents after the virtual NEC meeting presided over by Vice President Yemi Osinbajo on Thursday at the Presidential Villa, Abuja.
Okowa said the council took the report on the interface between NEC’s Adhoc Committee and the Presidential Taskforce on COVID-19 on the ease of the lockdown and reopening of the economy.
“A lot has been done because we have had several meetings with the PTF and our inputs have been taken in the briefings to the president and the guidelines have been released.
“Since we started the meeting on May 28, lots of decisions have been taken and these decisions have already started to impact on the economy.
“Currently, both the formal and informal sectors of the economy have gradually been reopened apart from a few segments that still need to be discussed and we have also realised that the rural areas have also been opened to farming activities.
“And we have also in the course of our discussion agreed on the need to open the interstate borders to travels which also means travels by both road and train services is now possible and domestic flights are suppose to have resumed from yesterday July 8.’’
According to him, there are still other sectors of the economy that may not be open until further discussions are held.
He said the interface also discussed the issue concerning the reopening of worship centres and in many states of the federation, including FCT.
“Worship centres have been reopened with good protocols to be put in place which ought to be monitored by the various states and the FCT.
“So, a lot is actually been done; we talked about the issue of opening up schools but this will be further be discussed later today following the press briefing that was given by the Minister of Education.
“So, we will be meeting with the PTF on COVID-19 this evening at 8pm to further discuss issues surrounding the opening of schools but the economy is open now apart from restrictions to international travels and restrictions to sporting activities.
“The other course that had to be stood down is the resumption of higher institutions and other classes aside the graduating classes and also in the work place.
“In the work place, there are still some restrictions; not all civil servants are allowed to come to work because of the likelihood of crowding; so that is being further discussed in various states.
“I do know that civil servants in various categories are allowed to come but not the totality of the workforce.’’
He said that the reopening of bars, night clubs and other entertainment centres was still on hold until further discussions were taken.
Okowa said that advice was being taken from consultants who were ac monitoring the rate of transmission in the country.
“We have already entered community transmission and we are careful to ensure that as we open up the economy, we do not create a danger to the lives of Nigerians.
“So, generally, we think the best we can do as a country is to open up the economy; the economy is actually opening and we have to do it in a manner that we do not cause further health hazards,’’ he said.(NAN)
July 9, 2020